David Cameron's great childcare con

This isn’t just bad news for parents and children, it’s bad news for the economy too, says Sharon Hodgson.

Today’s coverage of David Cameron’s childcare policies has illustrated how out of touch this Government is. While they give tax cuts to those at the top, they have totally failed to support hardworking families with the cost of childcare.

As one mother, who works from home as a childminder, put it: “I remain unconvinced that it does anything for the typical working/lower middle class family”.

She is right. According to the Resolution Foundation think tank, 900,000 low income working families will not benefit from David Cameron’s childcare vouchers.

And of course no-one will get any help until 2015. There has been nothing for families in five years from this Government, while costs continue to rise and wages stagnate. And of course when it comes to living standards, hardworking parents have already seen their family budgets squeezed.

Working parents with two children have already lost £1,500 a year from the cut in childcare tax credits. Added to that, many mums have lost hundreds of pounds because of cuts to maternity pay, child benefit and pregnancy grants.

By the next election, George Osborne will have taken a total of £15 billion out of parents’ pockets.

All this is happening while costs continue to spiral. Childcare costs are rising faster than wages. A parent buying 50 hours of childcare per week for a child under two now faces an annual bill of nearly £11,000 per year or £14,000 per year in London. That’s the equivalent of a second mortgage.

And yet provision is getting patchier. Unbelievably, there are now 5,000 fewer childcare places since last year, as nurseries close down and childminders go out of business.

And many nurseries and children’s centres are charging top up fees for services that used to be free, pricing yet more hardworking families out of the labour market.

This isn’t just bad news for parents and children, it’s bad news for the economy too.

Labour want to ensure parents are able to go back to work if they want to. That’s why we’re looking to countries in Scandinavia who provide stronger support for childcare and where female unemployment is lower.

But this Government has made it more difficult for new mums to return to their job.

An Aviva survey found that 32,000 women left the workforce in one year since summer 2010 due to high costs of childcare making it more cost-effective to stay at home.

The summer holidays are a particularly tricky time for working parents. Those who can’t afford a private nanny or nursery are often forced to take time off work or rely on help from friends or families.

Labour was working to address this in Government. We tripled the number of holiday childcare places, but in their first year this Government cut 10,000 of those places, and have slashed the budget for holiday childcare by 40% so far.

There’s no doubt that childcare costs are one of the biggest drivers of living standards. The trouble is that hardworking parents have seen their income squeezed since the last election.

Only David Cameron could be so out of touch to think parents will be grateful for some help in 2015, when they’ve already seen their childcare support cut.

Sharon Hodgson MP is Labour’s Shadow Children’s Minister

David Cameron visits a school. Photo: Getty

Sharon Hodgson is Labour MP for Washington and Sunderland West. 

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Our union backed Brexit, but that doesn't mean scrapping freedom of movement

We can only improve the lives of our members, like those planning stike action at McDonalds, through solidarity.

The campaign to defend and extend free movement – highlighted by the launch of the Labour Campaign for Free Movement this month – is being seen in some circles as a back door strategy to re-run the EU referendum. If that was truly the case, then I don't think Unions like mine (the BFAWU) would be involved, especially as we campaigned to leave the EU ourselves.

In stark contrast to the rhetoric used by many sections of the Leave campaign, our argument wasn’t driven by fear and paranoia about migrant workers. A good number of the BFAWU’s membership is made up of workers not just from the EU, but from all corners of the world. They make a positive contribution to the industry that we represent. These people make a far larger and important contribution to our society and our communities than the wealthy Brexiteers, who sought to do nothing other than de-humanise them, cheered along by a rabid, right-wing press. 

Those who are calling for end to freedom of movement fail to realise that it’s people, rather than land and borders that makes the world we live in. Division works only in the interest of those that want to hold power, control, influence and wealth. Unfortunately, despite a rich history in terms of where division leads us, a good chunk of the UK population still falls for it. We believe that those who live and work here or in other countries should have their skills recognised and enjoy the same rights as those born in that country, including the democratic right to vote. 

Workers born outside of the UK contribute more than £328 million to the UK economy every day. Our NHS depends on their labour in order to keep it running; the leisure and hospitality industries depend on them in order to function; the food industry (including farming to a degree) is often propped up by their work.

The real architects of our misery and hardship reside in Westminster. It is they who introduced legislation designed to allow bosses to act with impunity and pay poverty wages. The only way we can really improve our lives is not as some would have you believe, by blaming other poor workers from other countries, it is through standing together in solidarity. By organising and combining that we become stronger as our fabulous members are showing through their decision to ballot for strike action in McDonalds.

Our members in McDonalds are both born in the UK and outside the UK, and where the bosses have separated groups of workers by pitting certain nationalities against each other, the workers organised have stood together and fought to win change for all, even organising themed social events to welcome each other in the face of the bosses ‘attempts to create divisions in the workplace.

Our union has held the long term view that we should have a planned economy with an ability to own and control the means of production. Our members saw the EU as a gravy train, working in the interests of wealthy elites and industrial scale tax avoidance. They felt that leaving the EU would give the UK the best opportunity to renationalise our key industries and begin a programme of manufacturing on a scale that would allow us to be self-sufficient and independent while enjoying solid trading relationships with other countries. Obviously, a key component in terms of facilitating this is continued freedom of movement.

Many of our members come from communities that voted to leave the EU. They are a reflection of real life that the movers and shakers in both the Leave and Remain campaigns took for granted. We weren’t surprised by the outcome of the EU referendum; after decades of politicians heaping blame on the EU for everything from the shape of fruit to personal hardship, what else could we possibly expect? However, we cannot allow migrant labour to remain as a political football to give succour to the prejudices of the uninformed. Given the same rights and freedoms as UK citizens, foreign workers have the ability to ensure that the UK actually makes a success of Brexit, one that benefits the many, rather than the few.

Ian Hodon is President of the Bakers and Allied Food Workers Union and founding signatory of the Labour Campaign for Free Movement.